08-07-2003, 05:42 AM
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 Re: How to kill a Keogh ??? JanZtaxNOSPAM <janztaxnospam[at]aol.com> wrote: - quote - > Nope, no problem in having both, even in the same year.
According to the instructions on Form 5305-SEP, you can'tuse THAT FORM to adopt your SEP if you currently maintain any other plan. Therefore, yes, you could have a SEP simultaneously, but you would have to find SOME OTHER way to create it. The primary advantage of a SEP is simplicity. If you have to "shop" for a prototype SEP that is simultaneously compatible with other plans and/or hire a plan specialist to straighten this out, much of the "fun" is taken out of it (so you might as well stick with the existing Keogh). - quote - > The major problem in
Good point! I believe all of the situations I'm dealing with> killing off a Keogh is that those who have a Money Purchase > Plan (required contribution) may have a problem in killing > that plan this year if they've earned money so far this > year. include a money purchase plan. MTW << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-06-2003, 12:09 PM
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| Re: How to kill a Keogh ??? - quote - > I've got a handful of clients with single participant
Nope, no problem in having both, even in the same year. It's> defined contribution Keogh plans who would just ~love~ to > kill them and substitute a SEP-IRA instead (now that > contribution rates are equivalent). But, my understanding > is that you ~generally~ cannot set up a SEP (at least not > without specific IRS approval) so long as you have any > other type of retirement plan in place. the SIMPLE that has that restriction. The major problem in killing off a Keogh is that those who have a Money Purchase Plan (required contribution) may have a problem in killing that plan this year if they've earned money so far this year. Jan Zobel, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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